Appraisal Method Of Depreciation

AAA

DEFINITION of 'Appraisal Method Of Depreciation'

A form of depreciation calculation that is based upon appraisal value. The appraisal method of depreciation is calculated by appraising the value of the asset being depreciated both at the beginning and end of the depreciation period. The difference between the appraised values constitutes the amount of depreciation that can be taken.

INVESTOPEDIA EXPLAINS 'Appraisal Method Of Depreciation'

The appraisal method of depreciation assumes that the value of the asset being depreciated is decreasing over the term. If this is not the case, then no depreciation will be reported. Furthermore, this method of depreciation calculation is generally not recognized by GAAP principles.

RELATED TERMS
  1. Appraisal Approach

    A procedure for determining an asset's value. The appraisal approach ...
  2. Accounting

    The systematic and comprehensive recording of financial transactions ...
  3. Accrual Accounting

    An accounting method that measures the performance and position ...
  4. Appraisal

    A valuation of property (ie. real estate, a business, an antique) ...
  5. Depreciation

    1. A method of allocating the cost of a tangible asset over its ...
  6. Appraiser

    A practitioner who has the knowledge and expertise necessary ...
Related Articles
  1. An Introduction To Depreciation
    Active Trading

    An Introduction To Depreciation

  2. Depreciation: Straight-Line Vs. Double-Declining ...
    Forex Education

    Depreciation: Straight-Line Vs. Double-Declining ...

  3. Avoid Capital Gains Tax On Your Home ...
    Taxes

    Avoid Capital Gains Tax On Your Home ...

  4. Taking Stock Of Discounted Cash Flow
    Fundamental Analysis

    Taking Stock Of Discounted Cash Flow

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center